Consider the following simple model of the Mile End Park Beautification Initiative (from the lectures). There are two students, each of whom can choose to plant flowers (F) or not to plant flowers (N). If both students plant flowers, then the appreciation) benefit is 95 to each player. If exactly one student plants flowers, then the benefit is 50 to each player. The cost to either pla planting flowers is c > 0, regardless of the other player's choice. Each student starts (before any costs or benefits) with a payoff of zero. The above assumptions lead to the following game in strategic form. F 95 — с, 95 — с 50 - с, 50 N 50, 50 - с 0,0 Suppose thatc< 95.

Consider the following simple model of the Mile End Park Beautification Initiative (from the lectures). There are two students, each of whom can choose to plant flowers (F) or not to plant flowers (N). If both students plant flowers, then the appreciation) benefit is 95 to each player. If exactly one student plants flowers, then the benefit is 50 to each player. The cost to either pla planting flowers is c > 0, regardless of the other player's choice. Each student starts (before any costs or benefits) with a payoff of zero. The above assumptions lead to the following game in strategic form. F 95 — с, 95 — с 50 - с, 50 N 50, 50 - с 0,0 Suppose thatc< 95.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.12P

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